Wipro board approves Rs 12,000-cr share buyback at Rs 445 apiece

IT major Wipro's Board of Directors on Monday approved a share buyback of up to 269,662,921 equity shares, representing 4.91 per cent of its total paid-up equity share capital, for an amount of Rs 12,000 crore.

The buyback price has been set at Rs 445 per share by the Wipro Board, which is a premium of 19 per cent over the closing price of Wipro shares on the National Stock Exchange of India on April 27, 2023, as per an exchange filing.

The buyback will be conducted through the tender offer route and will be open to all shareholders of Wipro. The buyback is expected to be completed by the end of July 2023.

The buyback size constitutes 20.95 per cent and 17.86 per cent of the aggregate of the fully paid-up Equity Share capital and free reserves of the Company as per the latest audited standalone and consolidated balance sheet, respectively, at March 31, 2023.

The share buyback comes as the company is expecting to grow its revenue and earnings in the coming years. The buyback will also help to improve the company's shareholder returns.

Bengaluru-headquartered Wipro, which competes in the IT services space with larger rivals like Tata Consultancy Services (TCS) and Infosys, posted a net profit of Rs 3,074.5 crore for the March quarter as against Rs 3,087.3 crore in the year-ago period.

The revenue for March 2023 quarter stood at Rs 23,190.3 crore, 11.17 per cent higher year-on-year, according to the filing.

For the full FY23, Wipro posted net profit of Rs 11,350 crore, 7.1 per cent lower than the preceding fiscal, while revenue was 14.4 per cent higher at Rs 90,487.6 crore.

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